Fort Walton Beach Council agenda — 08-20-13--surplus properties — reading text

Z and will be used as a comp because it was bank owned and sold at a lower price per sq ft. aE Qxnu Pa 23 5i2.b ca LE UN  5. 3 City Council of Fort Walton Beach 0 To: CITY MANAGER MEMORANDUM Michael D. Beedie, City Manager From: Carole Jones, Executive Assistant Date: August 20, 2013 Subject: Declaration of Surplus Property at 25 Miracle Strip Parkway SW 1. BACKGROUND: 1. 1. The City of Fort Walton Beach owns a parcel at 25 Miracle Strip Parkway SW. This Property was purchased through a tax certificate sale and was previously a gas station. The City has partnered with FDEP to obtain a grant to clear the property of any contamination caused by the previous use of the land. 1. 2. The 0. 67 -acre parcel ( Parcel ID No. 14- 25- 24- 221B -000B -0030) is currently undeveloped with an Existing Land Use Classification of Commercial. The Future Land Use Classification of the parcel is Commercial. 2. DISCUSSION: 2. 1. With the initiative to evaluate City -owned properties, Staff and the City Attorney developed a checklist for the disposition of surplus property. The first step in the process is for the City Manager to submit a report and recommendation to determine whether the property can be declared surplus. If City Council determines the property as excess property, an appraisal is required along with the manner in which the excess property will be disposed of 2. 2. Staff has evaluated the parcel at 25 Miracle Strip Parkway SW and determined that the City has no existing or future development plans for the property. 2. 2. 1. Staff would also recommend the method of disposition as a Request for Proposals to prospective purchasers. 2. 3. If approved as excess property by City Council, Staff will proceed with advertising the competitive solicitation of the property. 2. 3. 1. Upon receipt of the proposals for the parcels, the proposals will be evaluated and a recommendation on which proposal to accept, if any, will be brought back to City Council for review and approval. If the sale is approved by City Council, an ordinance conveying the land is required. 3. FINANCIAL INFORMATION: 3. 1. NBI Properties, the City' s real estate broker, performed an evaluation of the property to determine a preliminary fair market value of the property. In their report, NBI evaluated similar properties in order to estimate a fair market value. Based on the evaluation, a Page 1 of 2  5. 3 Conservative, Average, and Aggressive fair market value price was proposed based on 29, 185 SF of usable space. 3. 1. 1. Conservative Fair Market Value= $ 7. 50 / SF or $218, 887. 50 3. 1. 2. Average Fair Market Value= $ 10. 00 / SF or $ 291, 850.00 3. 1. 3. Aggressive Fair Market Value = $ 13. 50 / SF or $ 393, 997. 50 3. 2. NBI recommends the best use of this property as commercial development with the method of disposition as a sale. Their anticipated time on the market is between six to eighteen months. 3. 3. There will be costs associated with advertising the competitive solicitation for the purchase of the property. 3. 4. It is estimated that the cost of the appraisal and the legal advertisements will not exceed 5, 000. The cost of the appraisal and the legal advertisements is available in the FY 2012 -13 General Fund Balance. 4. RECOMMENDATION: 4. 1. Staff respectfully recommends City Council declare Parcel ID No. 14- 2S- 24 -221B- 00013- 0030, a 0. 67 -acre City -owned parcel located at 25 Miracle Strip Parkway SW as excess property in accordance with Chapter 2. 00. 05 of the City' s Code of Ordinances. 4.2. Staff also recommends City Council authorization to issue a Request for Proposals along with the proper legal advertisements to obtain competitive proposals to purchase the property. ATTACHMENTS: Disposition of Surplus Property ( PDT) NBI - 25 Miracle Strip 8 -20 -13 ( PDF) SIGNATURE BLOCK: Carole Jones Completed 08/ 13/ 2013 4: 06 PM Carole Jones Completed 08/ 13/ 2013 4: 07 PM City Manager Completed 08/ 15/ 2013 11: 12 AM City Council Pending Page 2 of 2  5. 3. a DISPOSITION OF SURPLUSIEXCESS PROPERTY CHECK LIST FOR THE CITY OF FORT WALTON BEACH, FLORIDA 1. The City Manager shall submit a report and recommendation to City Council for review and determination whether the parcel is unneeded for the immediate and future development/use requirements of the City and should be declared excess. Said City property cannot be in present use or have a future project plan. FWB Code 2.00.05 2. The City Council must determine that the City property is excess property. FWB Cade 2. 00. 051 3. The City Manager shall secure one independent appraisal of the property by appraisers qualified to conduct appraisals for the State of Florida by general law. FWB Code 2. 00.051 4. The City Council also determines the manner that the excess Property is disposed of, including but not limited to sealed bid, auction and negotiated sale. FWB Code 2. 00.051 5. % Ihe City Manager shall cause written notice of intent to dispose of property to be sent to abutting property owners, if any, and advertised twice in the legal advertisement section in a newspaper having general circulation within the City, advising the date by which proposals or offers must be received. FWB Code 2. 00. 051 6. Once a contract for sale has been negotiated to the satisfaction of the City Manager and proposed purchaser, the City Manager shall cause said contract to be submitted to the City Council for its review and approval. FWB Code 2. 00.051 7. The City Council shall review any proposed contract for sale and make a determination as to whether said contract is approved or disapproved. FWB Code 2. 00.052 S. If the sale is approved by the City Council, then the City Council shall approve by ordinance the conveyance of any land of the City. FWB Code 2. 00. 052 9. Once the City Council approves a contract for sale of excess real property, the subject property may then be sold according to the terms of said contract. FWB Code 2. 00.052 10. Award shall be made based upon consideration of best price and utilization of the property and development for uses benefiting the City and its citizens, in the exclusive discretion of the City Council. FWB Code 2. 00.052 11. In order to ensure each proposed purchase for development significantly contributes to the surrounding neighborhood and general needs of the City, the City Council reserves the right to place restrictions and covenants in the deed of conveyance which will guarantee accommodation of the City' s public utilities provisions and the public' s interest in proper and timely development of the property consistent with City development standards. All restrictions and conditions imposed shall be covenants running with the land, violation of which shall result in reversion of title to the City. FWB Code 2. 00.054  5. 3. b E' NBI P. t p4EQT1E4 iN C iBQ C• mm• mi >I> lnartm• nx waart 4xe[ c August 13, 2013 Michael Beedie —City Manager 25 Miracle Strip Pkwy. Fort Walton Beach, FL 32548 Dear Michael, Thank you for giving NBI the opportunity to provide a Broker' s Opinion to Value ( BOV) regarding the disposition of the property located at 25 Miracle Strip Pkwy, Fort Walton Beach, FL 32548. Having earned the respect among all the Professionals affecting the Northwest Florida Commercial Real Estate Industry, we feel very confident in helping you meet your goals within a reasonable amount of time. Et Please review our fisting proposal and Broker' s Opinion to Value to help with your decision on M fulfilling your objectives. Keep in mind these are MARKET DRIVEN quotes that will aid in 0 your ability to dispose of the property in a more " timely manner," and that all statements and m proposals are open for further discussions and objective reasoning. The Listing Proposal is as n follows: N a m Nm m2 CUdLRE 5  5. 3. b LISTING PROPOSAL FOR SALE The Valuation Method for determining the sales price for the subject property was derived by the Sales Comparison Approach for the like kind properties that have closed in the FWB Market within the last year. Based upon our assessments, we will use the Price Per Square Foot Market Value. When applied to the total approximate 29, 185 square feet of usable space, our initial asking price will start at $ 291, 850.00. Please find the list of comparable properties in the